bse scrip code: 540595 nsesymbol: tejasnet...2020/07/29  · of the bank by 125 basis points and...

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The Secretary National Stock Exchange of India Ltd Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 NSESymbol: TEJASNET The Secretary BSE Limited P J Towers, Dalal Street, Fort, Mumbai – 400 001 BSE Scrip Code: 540595 July 29, 2020 Dear Sir/Madam, Re: Newspaper Publication Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the unaudited financial results for the quarter ended June 30, 2020 published in the newspapers “Business Standard” - All India Edition and “Vishwavani” - Kannada Edition dated July 29, 2020. Kindly take the above information on record and acknowledge. Yours sincerely For Tejas Networks Limited N R Ravikrishnan General Counsel, Chief Compliance Officer & Company Secretary Encl: as above

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  • The Secretary National Stock Exchange of India Ltd Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 NSESymbol: TEJASNET

    The Secretary BSE Limited P J Towers, Dalal Street, Fort, Mumbai – 400 001 BSE Scrip Code: 540595

    July 29, 2020 Dear Sir/Madam, Re: Newspaper Publication

    Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the unaudited financial results for the quarter ended June 30, 2020 published in the newspapers “Business Standard” - All India Edition and “Vishwavani” - Kannada Edition dated July 29, 2020.

    Kindly take the above information on record and acknowledge. Yours sincerely

    For Tejas Networks Limited

    N R Ravikrishnan General Counsel, Chief Compliance Officer & Company Secretary

    Encl: as above

  • 6 ECONOMY & PUBLIC AFFAIRS MUMBAI | WEDNESDAY, 29 JULY 2020 1 >

    Call Assembly session on Friday: GehlotADITI PHADNIS New Delhi, 28 July

    The Rajasthan government on Tuesday told Governor Kalraj Mishra it wanted the legis-lative Assembly to meet on July 31 (which is Eid, a national holiday) and prom-ised to meet all other con-ditions laid out by the gover-nor in relation to Covid-19.

    Chief Minister Ashok Gehlot called a meeting of his Cabinet and discussed the matter internally before draft-ing a reply to the governor. “The Cabinet wants the Assembly session from July 31. The proposal is being sent to the governor,” Transport Minister Pratap Singh said.

    “We have formulated replies to the governor’s con-cerns. It is our right to call the Assembly. How the session will be held is the Speaker’s prerogative. We want the ses-sion on Friday,” Rajasthan Revenue Minister Harish Chaudhary told TV channels.

    Raj Bhavan is expected to respond late on Tuesday or on Wednesday.

    It is not clear what Gehlot camp’s Plan B is if the governor does not accede to its request.

    What could endanger the Gehlot government’s thin lead is the status of six Bahujan Samaj Party’s MLAs who merged their party with the Congress last year. The BSP on Monday petitioned the court against the merger. It also asked to be made party to a petition by a BJP MLA. The high court (HC) dismissed the petition, but now the matter has been appealed.

    The longer it takes for the Assembly to be convened, the more perilous will be Gehlot’s

    position among his MLAs. Although the Opposition BJP has an almost impossible task of corralling together nearly 20 Congress MLAs to make up the numbers to help it topple the Gehlot government, this can be done — given time.

    On Tuesday, a leader in the Sachin Pilot camp, Hemaram Choudhary, issued a video in which he said the Pilot camp was in touch with 15 other Congress MLAs, and they would support Pilot at the right time. This was a riposté to an earlier claim by Randeep Surjewala that three MLAs from the Pilot group would return to Gehlot and vote in his favour once they were allowed out of the captivity they were placed in. The rebels are planning their moves with all contingencies in mind.

    On Monday, Mishra wrote to Gehlot that he was not against calling an Assembly session, but listed questions that needed to be dealt with first. He asked whether the CM wanted to bring a trust vote, because if that was the case, a 21-day notice was not needed.

    Rajasthan Cabinet replies to governor

    It is not clear what Chief Minister Ashok Gehlot camp’s Plan B is if the governor does not accede to its request

    IndusInd Bank reported a 72 per cent fall in its pre-tax profit, to ~602.45 crore, in the first quarter, against ~2,160.34 crore in Q1FY20, due to additional provisioning for Covid. The lender’s net interest income rose 16.4 per cent year on year to ~3,309 crore. Its net profit plunged 68 per cent to ~460.4 crore, from ~1,432.3 crore a year ago. The bank has got approval to raise ~3,288 crore through preferential issue of fully paid-up 62.8 million equity shares at a price of ~524. This will augment the capital base of the bank by 125 basis points and take the capital adequacy ratio of the bank to 16.5 per cent. The shares have been allotted to investors, such as Route One, ICICI Prudential Life Insurance, Tata Investment Corporation, AIA Company, the promoters, and the holding company. Route One will put in ~935 crore, ICICI Pru Life ~560 crore, Tata Investment ~300 crore, and AIA ~410 crore, Hinduja Capital ~299 crore, and IndusInd International Holding will invest ~493 crore. Investment of the promoters will be locked in for three years and strategic investors will have a lock-in of one year. The lender made an additional provisions of ~920 crore in the June quarter due to Covid, taking the total provision to ~1,203 crore. The moratorium book of the lender has shrunk to 16 per cent at the end of June, against 50 per cent during April. SUBRATA PANDA

    ABHIJIT LELE Mumbai, 28 July

    Private sector lender YES Bank posted profit before tax (PBT) at ~60.24 crore in the quarter ended June (Q1FY21).

    The Mumbai-based lender had posted a PBT of ~174.98 crore in the quarter ended June 2019 (Q1FY20). Its pre-tax loss was ~4,765.9 crore in the fourth quarter ended March (Q4FY20).

    Its net profit for the reporting quarter stood at ~45.44 crore, against a net profit of ~113.76 crore in Q1FY20. It had booked a net loss of ~3,668.3 crore in Q4FY20. The bank is now an associate entity of State Bank of India after capital infusion of ~10,000 crore as part of a rescue package hammered out by the Reserve Bank of India.

    The net interest income declined 16.3 per cent to ~1,908 crore in Q1FY21, from ~2,281 crore in Q1FY20. The net interest margin (NIM) rose to 3 per cent in Q1FY21, from 2.8 per cent in Q1FY20. Its NIM was at 1.9 per cent in Q4FY20. The other income — comprising fee and commission — fell 51.2 per cent, from ~1,273 crore in Q1FY20 to ~621 crore in Q1FY21.

    The provisions (including for non-per-forming assets, or NPAs) and contin-gencies were ~1,086 crore in Q1FY21, down from ~1,784.1 crore in Q1FY20. The provi-sions were about ~4,872.34 crore in Q4FY20. The bank made Covid-19-related provisions of ~642 crore in Q1FY21.

    The provision coverage ratio (PCR) improved to 75.1 per cent in Q1FY21, from

    43.1 per cent in Q1FY20. The PCR was at 73.8 per cent in March 2020.

    The gross NPAs stood at 17.3 per cent in Q1FY21, from 5.01 per cent in Q1FY20. The gross NPAs were at 16.8 per cent in March. The net NPAs were at 4.96 per cent in June, from 2.9 per cent in June 2019. The net NPAs were at 5.03 per cent in March.

    The total deposits shrunk to ~117,360 crore in June, from ~2.26 trillion a year ago.

    The advances also shrunk to ~1.64 trillion as of June 30, from ~2.36 trillion in June 2019 and ~1.71 trillion in March.

    The capital adequacy ratio (CAR) stood at 8.6 per cent as of June 30. However, CAR improved to 20 per cent, with Tier-1 of 13.4 per cent in July following the follow-on public offer. It had failed to comply with the minimum Common Equity Tier-1 and Tier-1 capital requirements as of March 31.

    YES Bank PBT dips 65% to ~60 cr

    Stock slips below FPO price The stock of YES Bank on Tuesday fell below ~12, the price at which investors were issued shares in the follow-on public offering (FPO), which concluded last week. The stock, after hitting a low of ~11.1, ended at ~11.9 on the NSE, where shares worth ~1,220 crore changed hands. In the previous session, when the new shares issued in the FPO commenced trading, the stock had hit the 10-per cent lower circuit.

    BS REPORTER

    REPORT CARD~ crore Q1FY21 Change YoY % NII 1,908 -16.3 Operating profit 1,147 -41.5 Provisions & contingencies 1,087 -39.1 PBT 60 -65.6 Gross NPA 32,703 170.4 Gross NPA (%) 17.3 1229 bps

    Bbs: Basis points Compiled by BS Research Bureau Source: Capitaline

    ~ crore Q1FY21 Change YoY % NII 3,309 16.4 Operating profit 2,861 10.4 Provisions & contingencies 2,259 424.6 PBT 602 -72.1 Gross NPA 5,099 21.4 Gross NPA (%) 2.5 38 bps

    Source: Capitaline

    PM to hold review meet with banks todaySOMESH JHA New Delhi, 28 July

    Prime Minister (PM) Narendra Modi is set to hold a meeting via videoconference with the chief executives of

    state-owned and private banks on Wednesday.

    This is the first meeting the PM will

    hold with the brass of finan-cial institutions after the Covid-19 pandemic.

    “The agenda of the meet-ing hasn’t been circulated yet. The PM is expected to discuss credit flow into the economy, especially micro, small and medium enterpris-es (MSMEs), and map the progress of the government’s

    Covid-19 package,” said another bank executive.

    A finance ministry official said the announcements of the government so far had relied heavily on restarting eco-nomic activity with the help of financial institutions. The PM, he said, wanted to glean feed-back from the lenders. Finance Minister (FM) Nirmala Sitharaman is also expected to attend the meeting.

    Apart from major public sector banks (PSBs), top

    executives of some private lenders, such as Kotak Mahindra Bank, ICICI Bank, HDFC Bank, and the Indian Banks’ Association, are also expected to be present at the meeting.

    In June, Sitharaman had held separate meetings — one with PSBs and the other with private banks and non- banking financial companies. The FM had discussed ways in which the ~3-trillion Emergency Credit Line

    Guarantee Scheme could be effectively implemented for the MSME sector. She had also urged state-owned banks to go for better interest-rate transmission.

    On Monday, Reserve Bank of India Governor Shaktikanta Das had said at a public event that banks must raise money proactively and build up adequate capital buffers, along with urging corporates to look beyond banks to fund infrastructure projects.

    Prime Minister Narendra Modi will hold a meeting with the brass of financial institutions for the first time after the Covid-19 pandemic struck

    IndusInd Bank’s PBT declines 72%

    Extract of Consolidated Unaudited Results for quarter ended June 30, 2020 (` in crore except per share data)

    For and on behalf of the Board of Directors

    Notes

    Sd/-Sanjay Nayak

    CEO andManaging Director (DIN: 01049871)

    Tejas Networks Limited

    Registered and Corporate Office: J.P. Software Park, Plot No. 25, Sy. No. 13, 14, 17 and 18, Konnapana Agrahara Village, Begur Hobli, Bengaluru 560 100, Karnataka, India.

    Corporate Identity Number: L72900KA2000PLC026980 | Tel: +91 80 4179 4600; Fax: +91 80 2852 0201 E-mail: [email protected] | Website: www.tejasnetworks.com

    Sl. No. Particulars

    Quarter ended June 30, 2020

    Year endedMarch 31, 2020

    Quarter ended June 30, 2019

    1 Total Income from operations* 80.11 390.54 161.89

    2 Net Profit/(Loss) before tax (9.76) (138.57) 10.21

    3 Net Profit/(Loss) after tax (9.76) (237.12) 5.85

    4 Total Comprehensive Income/(Loss) for the period (Comprising Profit/(Loss) for the period after tax and Other ComprehensiveIncome/(Loss) after tax) (9.81) (237.55) 5.78

    5 Equity Share Capital (Face value of ` 10/- each) 95.61 95.48 95.18

    6 Reserves (excluding Revaluation Reserve) as shown in the Audited Balance Sheet of the previous year - 985.46 -

    7Earnings/(Loss) per Share ( of ` 10/- each)(i) Basic `(ii) Diluted `

    (1.06)(1.06)

    (25.76)(25.76)

    0.640.61

    1 Key Standalone Financial Information of the company is given below:

    Particulars Quarter ended June 30, 2020Year ended

    March 31, 2020Quarter ended June 30, 2019

    Total Income from operations* 78.73 386.20 160.56

    Net Profit/(Loss) before tax (9.88) (137.61) 10.13

    Net Profit/(Loss) after tax (9.88) (236.16) 5.77

    2 The above is an extract of the detailed format of quarterly financial results filedwith the Stock Exchanges under Regulation 33 of the Securities and Exchange Board of India (ListingObligations andDisclosure Requirements) Regulations, 2015 (as amended).The full format of the Quarterly financial results are available on the website of the Stock Exchange(s) and the Company (www.tejasnetworks.com).

    3 In July, 2017, the Income Tax Department (Department) initiated proceedings under Section 132 of the Income tax Act, 1961 (IT Act) and inMarch 2018, also sent a show cause notice to the company under Section 276(C) of the IT Act. The Company andits officials fully co-operated with the Department. During FY 2018-19, the Company and certain officers of the Company had received Summons under various sections of the IT Act from the Special Court for Economic Offences, to which the Companyhas responded. Post the ongoing proceedings initiated by the Department, during FY 2019-20, certain other agencies sent notices as part of their preliminary inquiries, which were duly responded by the Company and its officials. The Company is of theview that the outcome of these summons/notices will not have any material impact on the Company’s financial results. During FY 2019-20, the Company has received notices of demand from the Department for additional tax payable amounting to` 25.62 crore for AY 2017-18 (after adjusting the brought forward losses) under Section 156 of the IT Act after making additions of various items to income as per assessment orders issued under Section 143(3) read with Section 153A of the IT Act. TheDepartment has also issued show cause notices for initiating penalty proceedings under Section 274 readwith Section 270A/ 271(1)(c)/ 271AAB(1A) of the ITAct and the Company has filed a stay application against the penalty proceedings. The Companyhas also received a demand order for AY 2018-19 for additional tax payable amounting to ` 0.48 crore. The Company believes that there are several computational errors in the aforesaid demand orders and therefore the Company has filed an applicationfor rectification of errors in the aforesaid notices, including non-consideration of brought forward losses in AY 2012-13 assessment, u/s 154 of the IT Act. The Company has also challenged the orders passed by the Assessing Officer (AO) and filed an appealwith the Commissioner of Income Tax (Appeals) for the aforesaid assessment years. The Company is of the view that the outcome of these proceedings/ summons/ demands will not have anymaterial adverse impact on the Company’s financial results.

    4 On July 4, 2018, the Company had received an Order from the Customs Excise and Service Tax Appellate Tribunal (CESTAT) with respect to applicability of excise duty on the software used as part of the Multiplexer products during FY from 2002-03 to2009-10. The aforesaid CESTATOrder dealtwith an earlier Order received during the FY 2010-11with associated demandof` 11.87 crore and various show cause notices on a similarmatter received in earlier financial years leading to an additional demandof ` 24.88 crore i.e. a total demand of ` 36.75 crore. The aforesaid CESTAT Order was a culmination of the various appeals filed by both the Company and the Department of Central Excise in respect of both the earlier order and the show cause noticesmentioned above that were heard by the Commissioner of Central Excise and CESTAT.According to the aforesaid CESTATOrder, the value of software is to be included for the purpose of arriving at the assessable value for calculating the excise duty liability on the product. Accordingly, CESTAT had remanded thematter back to the adjudicatingauthority in June 2018 for quantifying the differential duty liability, interest and penalties.The adjudicating authority vide its order dated October 31, 2019 passed an order quantifying the differential duty liability and penalty amounting to ` 42.92 crore (which includes the demand of ` 36.75 crore by CESTAT asmentioned above) and orderingrecovery of appropriate interest. Additionally, the adjudicating authority has also imposed penalty on certain officers of the Company amounting to ` 0.90 crore. The total demand, in respect of this matter, as per the Order of the adjudicating authority,aggregates to ` 43.82 crore.The Company had earlier filed a Miscellaneous Application with CESTAT on August 19, 2018 challenging the aforementioned CESTAT Order passed in July 2018. Pursuant to the quantification order of the adjudicating authority in October 2019 as statedabove, the Miscellaneous Application has been withdrawn by the Company as the Company has filed a fresh appeal dated February 6, 2020 before the CESTAT against the order of the adjudicating authority dated October 31, 2019. The Company hadalso filed a Civil Application on September 24, 2018 under section 35L of the Central Excise Act, 1944 along with a stay application before the Hon’ble Supreme Court of India against the aforesaid CESTAT order passed in June 2018. The same continuesto remain pending for final hearing.The Company had, in previous years, also received show cause notices, from the Department of Central Excise in respect of FY 2010-11 to 2013-14 on a similar matter amounting to ` 3.01 crore which are not part of the orders discussed above and forwhich the company had provided its response. Based on Management’s assessment, supported by an external legal opinion, Management has concluded that the Company has a strong case to defend its position in the above matters and accordingly,no provision has beenmade in these financial results.

    5 The spread of COVID-19 has severely impacted businesses around the globe. In many countries, including India, there has been disruption to regular business operations due to lock-downs, disruptions in transportation, supply chain, travel restrictions,quarantines, social distancing and other measures.The Company is in the business of providing optical and data transmission equipment to telecom service providers. Since telecom networks have been identified as an essential service, the Company has been able to provide continual customer andtechnical support to its customers in India and worldwide, so that their network uptime remains high. During the quarter, the Company encountered delays in fulfilling certain customer orders in hand and delays in collection of trade receivables. While inthe near-term COVID 19 related uncertaintiesmay impact financial performance, themanagement believes that the demand for the company’s products will gradually increase in line with higher investments that telecomoperators aremaking to addressthe demand for fiber-based home broadband connections and to upgrade their network capacities, to cater to higher data traffic arising from increasing trend of work-from-home, learn-from-home and other data-intensive services. The Company hasmade an assessment of its liquidity position for the next one year and of the recoverability and carrying values of its assets comprising Property, Plant and Equipment, Intangible assets, Trade receivables, Inventory, and Investments as at the quarter endedJune 30, 2020, and has concluded that there are no material adjustments required in these consolidated financial results. Management believes that it has taken into account all the possible impact of known events arising from COVID 19 pandemic inthe preparation of the consolidated financial results. However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration. The actual results of the events arising from the pandemic may bedifferent from that estimated by themanagement. The company will continue tomonitor anymaterial changes to future economic conditions.* excludes other income.

    Place: BengaluruDate: July 27, 2020

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